Cyta ‘very satisfied’ with financial results, in light of economic woes

24 Jul 2015

Cypriot state-backed incumbent telco Cyta has released its results for the full year ended 31 December 2014. Total group revenues dropped by 8.7% to EUR396.487 million (USD433.118 million) in 2014, from EUR434.261 million reported for 2013, according to Cyta’s financial statement published in Greek on its website. Annual operating profit (EBIT) dropped by 35.6% to EUR42.555 million (from EUR66.063 million), although the firm noted that EBIT would have amounted to over EUR70 million if not for the costs of a voluntary retirement scheme. Profit before tax increased by 3.8% from EUR54.788 million in FY 2013 to EUR56.885 million in 2014, but it is noted that 2013’s pre-tax figure was impaired by a one-off investment in subsidiary Digimed Communications amounting to EUR24.7 million. Cyta’s annual net profit climbed to EUR47.600 million in 2014, compared to EUR37.445 million in 2013, helped by operating costs which were lowered via a strategic project for optimal cost management and due to lower personnel costs as a result of the voluntary retirement plan, under which 521 staff left Cyta in the twelve-month period.

In an announcement on its website, Cyta declared that in light of the highly challenging economic environment in Cyprus and the ‘seismic’ impact of events in 2013, the 2014 results are considered ‘very satisfactory compared to other similar-sized companies’ operating on the island. A debt bailout deal between Cyprus and international creditors requires the privatisation of Cypriot institutions including Cyta, but the telco’s statement did not reveal any new details on the process, simply saying that Cyta has set up teams which are providing financial and other data to the privatisation commissioner. Under the terms of the bailout, Cyprus has to raise EUR1.4 billion by selling off state-owned companies in sectors including telecoms, energy and ports; the Cyprus Mail notes that according to Cyta’s figures in its latest report, the telco’s total assets in 2014 were worth EUR971 million compared to EUR1.037 billion the previous year.

Regarding its Greek quadruple-play subsidiary Cyta Hellas, the Cypriot parent noted that a switch to a converged infrastructure strategy, rather than geographical expansion, had resulted in low capital expenditure, with a focus on maintaining ‘financial independence’ given the difficult situation in the Greek economy. Cyta promised that it will continue to ‘stand next to’ its Greek division, adding that it ‘will support our employees and protect [its] investment’.